Microba Life Sciences reports a 90% year-on-year increase in core microbiome test volumes, driving a 123% rise in core testing revenue to $2.1 million, while advancing clinical adoption and cost efficiencies.
- Core test volumes up 90% year-on-year, annualised run rate exceeds 21,300
- Core testing revenue grows 123% to $2.1 million despite 16% total revenue decline
- Legacy product phase-out completed, focusing on scalable Microbiome Explorer tests
- Cost savings initiatives to deliver over $3 million annually through restructuring and lab consolidation
- Strong clinical adoption in Australia and UK with enterprise contracts and AI-driven operational gains
Robust Growth in Core Testing Volumes
Microba Life Sciences has delivered a standout performance in the second quarter of fiscal 2026, reporting a 90% increase in core microbiome test volumes compared to the prior corresponding period. The company’s annualised run rate now exceeds 21,300 tests, positioning it well on track to surpass 24,000 tests for the full year. This growth is largely driven by the Microbiome Explorer test, which has seen record sales in Australia and promising uptake in the United Kingdom.
Strategic Shift Away from Legacy Products
Microba has completed its strategic transition away from legacy products, which had been a drag on revenue and operational focus. The company’s core growth products, particularly Microbiome Explorer, now represent 55% of total revenue, underscoring a clear pivot to scalable, high-margin offerings. While total revenue declined 16% year-on-year due to the discontinuation of legacy lines, core testing revenue surged 123% to $2.1 million, reflecting strong market acceptance and clinician adoption.
Operational Efficiencies and Cost Management
Cost reduction initiatives are a key highlight, with restructuring efforts in the first quarter delivering an annualised $2 million reduction in staff costs. Additionally, the consolidation of Microba’s global laboratory footprint is expected to save over $1 million in the next two years, while also improving cost of goods sold through economies of scale. These measures have contributed to a quarter-on-quarter improvement in operating cash outflows, supporting the company’s guidance to achieve regional breakeven by the end of FY26.
Advancing Clinical Adoption and Market Development
Microba’s clinical testing adoption is progressing well, particularly in Australia where the company has moved beyond early innovators to secure enterprise contracts with small to medium healthcare groups. Twelve clinic account contracts signed since November 2025 signal meaningful recurring volume potential. In the UK, Microba is leveraging its Invivo Healthcare acquisition to accelerate market penetration, with test sales outperforming Australia’s equivalent post-launch period by 33%. These developments are supported by enhanced marketing effectiveness following a major brand consolidation and product renaming initiative.
AI Integration Driving Efficiency and Customer Experience
Microba is embedding artificial intelligence across its operations, with notable success in customer support where AI resolves over 70% of inquiries autonomously, achieving a 94.7% satisfaction score. AI-assisted software engineering has boosted productivity by 1.5 times, with further gains expected. Scientific literature review processes have also been streamlined, reducing human hours by 30% and aiming for over 50%. This comprehensive AI rollout is enhancing operational agility and positioning Microba competitively in an increasingly technology-driven healthcare landscape.
Bottom Line?
Microba’s strong core test growth and operational efficiencies set the stage for breakeven and sustained expansion, but upcoming clinical trial results and market dynamics will be critical to watch.
Questions in the middle?
- How will Microba’s therapeutics partnerships evolve given the cessation of internal R&D?
- What impact will new reimbursement mechanisms have on clinical adoption rates?
- Can AI-driven efficiencies continue to scale alongside rapid test volume growth?